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Pump and Dump

‘Pump and Dump’ schemes are a form of market manipulation whereby an entity holding an asset takes actions that temporarily increase the asset’s price before selling it for a profit. After selling the asset, it is typical for its price to decline sharply. Various means are employed to induce ephemeral price increases, including disseminating false information regarding an asset. After those involved in the scheme exit their positions, asset prices fall dramatically due to selling pressure and the abandonment and exposure of tactics used to boost market price artificially.